HHS Awards $11.5M for Server Services to Elohi Technology Solutions LLC
Contract Overview
Contract Amount: $11,482,377 ($11.5M)
Contractor: Elohi Technology Solutions LLC
Awarding Agency: Department of Health and Human Services
Start Date: 2025-01-28
End Date: 2025-09-30
Contract Duration: 245 days
Daily Burn Rate: $46.9K/day
Competition Type: COMPETED UNDER SAP
Number of Offers Received: 1
Pricing Type: FIRM FIXED PRICE
Sector: IT
Official Description: SERVERS, PIMC
Place of Performance
Location: PHOENIX, MARICOPA County, ARIZONA, 85016
State: Arizona Government Spending
Plain-Language Summary
Department of Health and Human Services obligated $11.5 million to ELOHI TECHNOLOGY SOLUTIONS LLC for work described as: SERVERS, PIMC Key points: 1. Contract awarded to Elohi Technology Solutions LLC for server services. 2. The contract falls under the 'Other Computer Related Services' NAICS code. 3. Competition was conducted under SAP, indicating a potentially limited but structured process. 4. The total award value is $11,482,377.48. 5. The contract duration is 245 days.
Value Assessment
Rating: fair
The award value of $11.5M for server services over 245 days appears high when compared to typical IT service contracts. Benchmarking against similar government contracts for server maintenance and support is recommended to assess value.
Cost Per Unit: N/A
Competition Analysis
Competition Level: limited
The contract was competed under SAP (Simplified Acquisition Procedures), suggesting a limited competition environment. While this can expedite the process, it may not always yield the best price discovery compared to full and open competition.
Taxpayer Impact: The $11.5M award represents taxpayer funds allocated for essential IT infrastructure. Ensuring competitive pricing within the SAP framework is crucial for maximizing the value of this expenditure.
Public Impact
Ensures continued operation of critical Indian Health Service IT infrastructure. Supports the digital health initiatives of the IHS. Potential for improved data management and accessibility for healthcare providers.
Waste & Efficiency Indicators
Waste Risk Score: 50 / 10
Warning Flags
- Limited competition under SAP may lead to suboptimal pricing.
- Contract duration is relatively short, potentially requiring follow-on actions.
- Lack of detailed performance metrics in the provided data.
Positive Signals
- Addresses a clear need for server services within HHS.
- Awarded to a specific company, providing clarity on vendor responsibility.
- Firm Fixed Price contract type helps control costs.
Sector Analysis
The IT services sector, particularly for government contracts, is highly competitive. Server maintenance and support are critical components of agency operations, with spending benchmarks varying based on scope and duration. This contract's value should be assessed against industry standards for similar services.
Small Business Impact
The data does not indicate if small businesses were involved in this procurement. Further analysis would be needed to determine the extent of small business participation or if set-aside opportunities were missed.
Oversight & Accountability
Oversight will be crucial to ensure Elohi Technology Solutions LLC meets the performance requirements of the contract. The Department of Health and Human Services' contracting officers should monitor contract performance and expenditures closely.
Related Government Programs
- Other Computer Related Services
- Department of Health and Human Services Contracting
- Indian Health Service Programs
Risk Flags
- Potential for overpricing due to limited competition.
- Short contract duration may lead to continuity risks.
- Lack of transparency on specific services rendered.
- No clear indication of small business participation.
Tags
other-computer-related-services, department-of-health-and-human-services, az, definitive-contract, 10m-plus
Frequently Asked Questions
What is this federal contract paying for?
Department of Health and Human Services awarded $11.5 million to ELOHI TECHNOLOGY SOLUTIONS LLC. SERVERS, PIMC
Who is the contractor on this award?
The obligated recipient is ELOHI TECHNOLOGY SOLUTIONS LLC.
Which agency awarded this contract?
Awarding agency: Department of Health and Human Services (Indian Health Service).
What is the total obligated amount?
The obligated amount is $11.5 million.
What is the period of performance?
Start: 2025-01-28. End: 2025-09-30.
What specific server services are included in this $11.5M contract, and how do they align with IHS's strategic IT goals?
The provided data categorizes the service under 'Other Computer Related Services' (NAICS 541519). To fully assess value, a detailed breakdown of services such as server maintenance, upgrades, cloud integration, or data management is needed. Understanding how these services directly support the Indian Health Service's mission and long-term IT strategy is essential for justifying the expenditure.
What was the competitive landscape for this SAP procurement, and what measures were taken to ensure fair pricing?
Competition under Simplified Acquisition Procedures (SAP) typically involves a smaller pool of vendors compared to full and open competition. It's important to understand if multiple quotes were solicited and evaluated, and if the pricing received was benchmarked against market rates or previous contracts. The agency should have justification for why SAP was appropriate and how price reasonableness was determined.
How will the effectiveness of these server services be measured, and what are the key performance indicators (KPIs) for this contract?
Effectiveness is paramount for IT infrastructure contracts. Key performance indicators should be established to measure uptime, response times, security compliance, and user satisfaction. Regular performance reviews between HHS and Elohi Technology Solutions LLC will be necessary to ensure the services meet the defined objectives and deliver the expected value to the Indian Health Service.
Industry Classification
NAICS: Professional, Scientific, and Technical Services › Computer Systems Design and Related Services › Other Computer Related Services
Product/Service Code: IT AND TELECOM - COMPUTE
Competition & Pricing
Extent Competed: COMPETED UNDER SAP
Solicitation Procedures: SIMPLIFIED ACQUISITION
Solicitation ID: RFQ-24-PHX-051
Offers Received: 1
Pricing Type: FIRM FIXED PRICE (J)
Evaluated Preference: NONE
Contractor Details
Address: 3415 S SEPULVEDA BLVD STE 1100, LOS ANGELES, CA, 90034
Business Categories: American Indian Owned Business, Category Business, Corporate Entity Not Tax Exempt, Limited Liability Corporation, Minority Owned Business, Native American Owned Business, Self-Certified Small Disadvantaged Business, Small Business, Special Designations, U.S.-Owned Business, Woman Owned Business, Women Owned Small Business
Financial Breakdown
Contract Ceiling: $11,482,377
Exercised Options: $11,482,377
Current Obligation: $11,482,377
Actual Outlays: $10,220,728
Contract Characteristics
Commercial Item: COMMERCIAL PRODUCTS/SERVICES
Cost or Pricing Data: NO
Timeline
Start Date: 2025-01-28
Current End Date: 2025-09-30
Potential End Date: 2030-09-30 00:00:00
Last Modified: 2025-09-18
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